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Tax audit liability

27 December 2020

A company which is exporting software services having turnover exceeding 50 lacs but below 1 crore.Is it liable to tax audit or not??

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12 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 27 December 2020

Not liable for tax audit

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 27 December 2020

Not liable , tax audit limit u/s 44AB 2 Crores

patil rupa (40 Points)
Replied 27 December 2020

Software services are professional services , professional services are liable to tax audit if gross receipts exeeds 50 lacs ??

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 27 December 2020

If it is following presumptive basis u/s 44AB then it is not liable for tax audit

patil rupa (40 Points)
Replied 27 December 2020

To avail presumptive taxation ,the gross receipts to be below 50 lacs

sudip sharma (article) (734 Points)
Replied 27 December 2020

First of all it is not a case of specified profession bcz it can be an individual assessee and it is a company assessee. and company assessee is not eligible for sec 44AD and tax audit sec 44AB turnover limit exceed 1 cr.

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 27 December 2020

Individuals / HUF , can only choose presumptive scheme ie , books not maintained case , As per companies act , books of account mandatory!

patil rupa (40 Points)
Replied 27 December 2020

Software services will come under engineering (which is a professional service) ?? and gross receipts are more than 50 lacs which is liable to tax audit

sudip sharma (article) (734 Points)
Replied 27 December 2020

Yes but the assessee should be an individual but here assessee is company

patil rupa (40 Points)
Replied 27 December 2020

In sec 44ab there is nowhere mentioned that individual or company .There only mentioned as an assesse then the assessee can be an individual or a company ,it makes no difference

sudip sharma (article) (734 Points)
Replied 27 December 2020

Plz refer sec 44AA and then Sec 44ADA then u will believe that specified professional is individual mentioned therein and sec 44AB talk about 50 lacs to such specified professional.